Bankruptcy

Elliot Wave Calls a High, Expects Bear to Renew

By mcbride

The most accurate financial reporting that I read comes from the folks at Elliot Wave International.  In the most current ?Theorist? which comes out monthly for subscribers, they are calling for the bear market to renew ? perhaps not right away, but shortly.  While acknowledging that the fast run up in the markets over the last few months (50% gain in the S&P in just 5 months) may continue for a while longer, their theory is that it is better to get out early than late ? so they err on the side of calling market tops early.  They note that the bear market rally of 1931 saw a 30% retracing before falling again, and we are now at a 37.5% retracing of the first wave down (14,198 to 6,470).  Again, these folks correctly called the top before the current bear market began, which they label as wave one, and for the recent rally (predicting in February and again in April that there would be ?a ?swift? rally? to 9,000 to 10,000 from 6,470 in the DJIA).  So, I suggest that people investigate this most recent prediction (learn more from them at www.Elliotwave.com and please note I am not affiliated with them (other than being a long time subscriber) in any way!) and follow their suggestion: ?keep the bulk of ? [your] wealth in cash and the safest possible cash equivalents, in the safest institutions, as described in Conquer the Crash ­ [a book written by Robert Prechter].? 

 Michael

Full post as published by Texas Lawyer Blog on August 11, 2009 (boomark / email).